Question
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Stanza Revenues $ (818,000) $ (756,000) Cost
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021:
Penske | Stanza | ||||||||
Revenues | $ | (818,000) | $ | (756,000) | |||||
Cost of goods sold | 291,300 | 189,000 | |||||||
Depreciation expense | 208,000 | 272,000 | |||||||
Investment income | Not given | 0 | |||||||
Dividends declared | 80,000 | 60,000 | |||||||
Retained earnings, 1/1/21 | (750,000) | (360,000) | |||||||
Current assets | 414,000 | 588,000 | |||||||
Copyrights | 1,060,000 | 550,500 | |||||||
Royalty agreements | 662,000 | 1,138,000 | |||||||
Investment in Stanza | Not given | 0 | |||||||
Liabilities | (502,000) | (1,401,500) | |||||||
Common stock | (600,000) | ($20 par) | (200,000) | ($10 par) | |||||
Additional paid-in capital | (150,000) | (80,000) | |||||||
Note: Parentheses indicate a credit balance.
On January 1, 2021, Penske acquired all of Stanzas outstanding stock for $929,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $616,000 book value but a fair value of $706,000.
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As of December 31, 2021, what is the consolidated copyrights balance?
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For the year ending December 31, 2021, what is consolidated net income?
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As of December 31, 2021, what is the consolidated retained earnings balance?
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As of December 31, 2021, what is the consolidated balance to be reported for goodwill?
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